We already had a similar thread here /forum/f5/offshore-company-passport-iran-can-i-open-14819/ - however, yes you can incorporate a Offshore company in the Seychelles and also open a Bank account in Cyprus (at least it is where we know it is possible).
Typically there is no additional information about why a client is declined by the bank... I don't know your case but if you want us to look into this then please submit a ticket to our corporate support!